The U.S. Bankruptcy Code also allows individual debtors who meet certain financial criteria to adopt extended time payment plans for the payment of debts. An individual debtor on a regular income may submit a plan for installment payment of outstanding debts. This is called a Chapter 13 Plan. This plan must be confirmed by the court. Once it is confirmed, debts are paid in the manner specified in the plan. After all payments called for by the plan are made, the debtor is given a discharge. The plan is, in effect, a budget of the debtor's future income with respect to outstanding debts. The plan must provide for the eventual payment in full of all claims entitled to priority under the Bankruptcy Code. The plan will be confirmed if it is submitted in good faith and is in the best interest of the creditors.
A Chapter 13 plan must provide for the submission of all or such portion of future earnings or other future income of the debtor to the supervision and control of the trustee as is necessary for the execution of the plan. After the confirmation of a Chapter 13 plan, the court may exercise its discretion and order any entity from whom the debtor receives income to pay all or part of such income to the trustee.
Title: Understanding the Massachusetts Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee Keywords: Massachusetts order, debtor's employer, remit deductions, debtor's paycheck, trustee Introduction: The Massachusetts Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal directive designed to facilitate the fair and efficient collection of debt owed by a debtor. This order mandates employers to deduct a portion of the debtor's wages and remit them directly to the assigned trustee, ensuring the fulfillment of payment obligations. Let's take a closer look at the different types of Massachusetts orders that may require employers to remit deductions. 1. Wage Garnishment Order: In situations where a debtor fails to make timely payments towards a debt, a creditor may seek a wage garnishment order. This type of Massachusetts order authorizes the debtor's employer to deduct a specified amount from each paycheck and remit it to the trustee, who then ensures the funds are distributed to the appropriate creditor(s). 2. Child Support Order: In cases involving child support, a Massachusetts order may require an employer to deduct a predetermined percentage from the debtor's paycheck and remit it to the appropriate trustee, such as the Department of Revenue's Child Support Enforcement Division. This ensures the financial support children require is maintained, allowing for consistent and timely payments. 3. Bankruptcy Order: When an individual files for bankruptcy in Massachusetts, a court-issued order may require the debtor's employer to remit a portion of their earnings directly to the bankruptcy trustee. This order helps the trustee ensure the proper distribution of funds to satisfy outstanding debts as per the bankruptcy terms. 4. Tax Levy Order: In cases where a debtor owes unpaid taxes to the state or federal government, a Massachusetts tax levy order may be issued. This order enables the government to collect delinquent taxes by instructing the debtor's employer to remit deductions from their paycheck to the appropriate taxing authority. Conclusion: The Massachusetts Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee encompasses various types of orders, including wage garnishment, child support, bankruptcy, and tax levy. By implementing these orders, the Massachusetts legal system aims to ensure the effective collection and distribution of funds to satisfy outstanding debts, support child maintenance, manage bankruptcy proceedings, and facilitate tax collection. Understanding these orders is essential for businesses, debtors, and trustees to ensure compliance with the law and uphold financial responsibilities.
